b. Suppose that only two goods are produced in an economy. The prices in 2020 and 2021 are given in the following table: 2020 2021 Price of apples 2£ 2.1£ Price of laptops 700£ 750£ The typical basket of the country consists in the consumption of 10,000,000 applies and 30,000 computers. Calculate the CPI of the economy in 2020 and 2021 and the inflation rate in 2021.
b. Suppose that only two goods are produced in an economy. The prices in 2020 and 2021 are given in the following table: 2020 2021 Price of apples 2£ 2.1£ Price of laptops 700£ 750£ The typical basket of the country consists in the consumption of 10,000,000 applies and 30,000 computers. Calculate the CPI of the economy in 2020 and 2021 and the inflation rate in 2021.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Measuring The Cost Of Living
Section: Chapter Questions
Problem 4QR
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